Shares in the Seven Group jumped after posting a strong first half result boosted by mining production and infrastructure activity in Australia.
A short time ago, they were up 12.2% to $18.51.
Underlying profit after tax for the industrial services group was up 81% to $159.8 million. Revenue grew 31% to $1.4 billion.
Statutory profit was down 41% to $168.6 million, dragged down by a $91.3 million impairment of its investment in Seven West Media, the television and publishing business.
“The continued strength of the mining production cycle with greater utilisation of fleets has supported parts growth and component demand at WesTrac (the Caterpillar dealership),” says Ryan Stokes, Managing Director and CEO.
“Coates Hire remains well positioned to benefit from the strong East Coast infrastructure demand and our increased stake in Beach Energy provides the Group with increased exposure to East Coast gas demand.”
The company declared a dividend of 21 cents, up from 20 cents last year.